Bellwether's Most Important CEO Signals Inflation Ahead.

    Bellwether's Most Important CEO Signals Inflation Ahead. This may not be temporary.   According to many economists, inflation is the biggest threat to the stock market in the opening of a new economy after the pandemic. Prices made the highest increase since 2008. With prices soaring due to a global pandemic, the increase was announced by the US central bank as "temporary". It is thought that such a rapid rise in prices will stop and come back. So it makes sense to hear how the CEOs of some of America's biggest companies feel about rising prices. Here's where the message seems clear for JPMorgan Chase JPM (NYSE) $159,21 -0,28 (-%0,18)

JPMorgan Chase

It is useful to examine JPMorgan Chase, an important company with a bird's eye view of the economy. By the end of 2020, the Company operated approximately 5,000 bank branches in Washington, D.C. and the United States alone. With assets of approximately $3,7 trillion and 255,000 employees, it represents a company of the size of more than 60 percent of the United States. The firm's research team agreed with the Fed and broader consensus that a strong economic recovery would fuel higher prices and interest rates.  

Bellwether's Most Important CEO Signals Inflation Ahead.

  Therefore, JPMorgan increased its estimate for full-year expenses from $70 billion to $71 billion. CEO Jamie Dimon voiced the possibility that consumer savings, incomes and sentiment, with increases in home prices and stocks, could trigger inflation. He concluded by summarizing that these headwinds could push inflation higher than people think, and that not all of it will be temporary.

There is no need to look at all this through the crystal ball.

Nobody can predict the future. In summary, the CEO of one of the country's largest and most respected banks says that the US economy may soon be stronger than ever before. Whatever Fed chairman Jerome Powell may say, he is constantly painting a picture of higher prices, both by the words and actions of the CEO. That's why investors should be careful.  

Source: The Motley Fool

 

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